ITAT Amritsar Validates Section 115BAC Concessional Tax Claim Despite 9-Day Form 10-IE Filing Delay Caused by Portal Glitches

In a notable judicial determination regarding procedural compliances under the Income Tax Act 1961, the Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) has ruled in favor of an assessee who faced a minor delay in submitting Form 10-IE. The case, Ravi Kant Luthra Vs ADIT, establishes that the substantive benefits of the concessional tax regime under Section 115BAC cannot be lawfully denied solely due to a belated filing of the requisite form, especially when the delay is directly attributable to technical anomalies on the government's e-filing portal and the form is made available to the tax authorities prior to the processing of the return.

Factual Matrix of the Dispute

The sequence of events leading to the litigation revolves around the timeline of the assessee's tax filings for the relevant assessment year.

  1. Original Filing: The assessee initially submitted the income tax return on 11.01.2022. Under this original filing, the declared total income stood at Rs. 16.80 lakhs. At this juncture, the assessee had opted for the traditional tax structure, actively claiming various deductions available under Chapter VI-A of the Income Tax Act 1961.
  2. Extended Deadlines: Acknowledging widespread disruptions, the Central Board of Direct Taxes (CBDT) had previously issued Circular No. 1/2022, which extended the statutory deadline for submitting Form 10-IE to 15.03.2022.
  3. Revised Filing: Subsequently, the assessee decided to transition to the new, concessional tax framework outlined in Section 115BAC. To effectuate this change, a revised return was uploaded on 24.03.2022. Concurrently, the mandatory Form 10-IE was also filed on the exact same date. Through this revised submission, the assessee sought a tax refund amounting to Rs. 26,000/-.
  4. Processing and Rejection: The Centralized Processing Centre (CPC) processed the original return on 27.03.2022. Later, on 05.07.2022, an intimation was issued under Section 143(1) wherein the CPC categorically rejected the assessee's claim to be taxed under the new regime. The primary justification provided for this rejection was the failure to furnish Form 10-IE on or before the due date stipulated under Section 139(1).

Progression Through Appellate Authorities